Decision Maker: Cabinet

Outcome: Recommendations Approved

Is Key Decision?: Yes

Is Callable In?: Yes

Date of Decision: January 27, 2026

Purpose: Cabinet to recommend to Council a number of actions including setting the net revenue budget, council tax requirement, capital programme and numerous other associated policies.

Content: RESOLVED:   It is recommended that Cabinet makes the following recommendations to Full Council.   Cabinet recommends that Council:    Approves the net revenue budget requirement be set at £1,265.9 million (net cost of services after service specific government grants) for 2026/27 (Annex B), subject to confirmation of the Final Local Government Financial Settlement. Approves the total Council Tax Funding Requirement be set at £1,033.0 million for 2026/27. This is based on a council tax increase of 4.99%, made up of an increase in the level of core council tax of 2.99% and an increase of 2% in the precept proposed by Central Government to cover the growing cost of Adult Social Care (Annex E). Sets the Surrey County Council precept for Band D Council Tax at £1,938.42, which represents a 4.99% uplift, a rise of £1.77 a week from the 2025/26 precept of £1,846.35. This includes £323.51 for the Adult Social Care precept, which has increased by £36.90. A full list of bands is as follows: Notes that underlying General Fund reserve balances are projected to remain at £49.1 million as of 1 April 2026, based on the current year forecast.  Approves the Total Schools Budget of £787.6 million to meet the council’s statutory requirement on schools funding (as set out in Section 9 of the 2026/27 Final Budget (Appendix 1)). Approves the overall indicative Budget Envelopes for Directorates and individual services for the 2026/27 budget (Annex B) and that the Corporate Leadership Team be required to meet the revenue budget for the delivery of council services. That the Corporate Leadership Team be required to deliver the revenue saving plans as set out in Annex A. Delegate powers to the Leader and Deputy Chief Executive & Executive Director of Resources (Section 151 Officer) to finalise budget proposals and recommendations to County Council, updated to take into account new information in the Final Local Government Finance Settlement; Approves the total £297.1 million proposed Capital Programme for 2026/27 (comprising £291.5 million of budget and 5.6 million pipeline) (Annex C). Approves the Capital and Investment Strategy (Annex F - Sections 1 to 3), which provides an overview of how risks associated with capital expenditure, financing and treasury will be managed as well as how they contribute towards the delivery of services. Approve the Treasury Management Strategy and Prudential Indicators (Annex F – Section 4) which set a framework for the council’s treasury function to manage risks, source borrowing and invest surplus cash. Approves the policy for making a prudent level of revenue provision for the repayment of debt - the Minimum Revenue Provision (MRP) Policy (Annex G). Approve the planned use and contributions to the level of the Earmarked Reserves, as set out in Annex D. Approves the creation and funding of the council’s contribution to the Local Government Reorganisation Implementation Programme (as set out in Annex D).   Cabinet acknowledges and accepts the opposition(s)  proposal / amendments  in principle subject to the council due diligence with the finance team and to be incorporated into the Budget proposal for Council to approve.   (The decisions on this item can be called-in by the Resources and Performance Select Committee)